Sydney Water Corporation v Caruso

Sydney Water Corporation appealed and Mr Caruso cross-appealed from a decision of the Land and Environment Court of New South Wales concerning compensation payable for the compulsory acquisition of land. The dispute centred on the assessment of the market value of the acquired land, which was located within a flood zone and was intended for use as part of a trunk drainage scheme.

The primary legal issues before the Court of Appeal were whether the primary judge erred in determining the market value of the acquired land, particularly in relation to the potential for a "cut and fill" scheme to enable development, and whether the primary judge erred in resolving conflicting expert evidence in favour of the claimant. Further issues concerned the underlying zoning of the acquired land and the claimant's entitlement to compensation for stamp duty costs incurred in purchasing replacement property, given the assessment of market value on a basis more valuable than the land's actual pre-acquisition use.

The Court of Appeal considered whether a hypothetical purchaser would have valued the land on the basis of a likely "cut and fill" scheme, and whether the primary judge's approach to conflicting expert evidence constituted an error of law. The Court also examined the inherent characteristics of the land and the implications of section 61 of the *Land Acquisition (Just Terms Compensation) Act 1991* on the stamp duty claim.

The appeal and cross-appeal were dismissed, with costs awarded to the respondent.